Investment Summary

PTLA purchased Chinook Way Apartments in 2005 to complete a 1031 exchange for its investors. Located in the award-winning, planned community of Fairview Village, Chinook Way represented a well-located asset with opportunity to improve both the resident profile and operations. Successful management drove revenue and property value to new heights, and the property was refinanced in both 2013 and 2015, returning substantial equity to investors. In 2016, the property sold, and the partnership participated in a 1031 exchange to further defer taxes.

Management Summary

In 2014, the decision was made to self-manage our assets. We felt strongly that we could better drive Net Operating Income (NOI), and we spent significant time with the onsite team to instill a sense of ownership in the asset. Our plan worked, and within one year of taking over, monthly NOI was up significantly—over 19%. In fact, from the time we took over until we sold the property in 2016, monthly NOI growth contributed to over $3 million in added value to our investors.

Property Facts

Property Type: Conventional Multi-Family
Acquisition Date: July 2005
Disposition Date: August 2016
Property Vintage: 2001
# of Units: 124
Strategy: Buy & Hold for Long-Term Cash Flow
Target Holding Period: 10 Years
Acquisition Leverage: 56%
Equity Type: 1031 Exchange
Average Annual Investor Cash-on-Cash Return: 5.60%
Net Investor Internal Rate of Return (Net IRR): 10.94%